Mumbai, Sept. 8 -- The headline equity benchmarks traded with decent gains in early afternoon trade, driven by optimism after the GST Council announced big tax cuts. At the same time, weak U.S. job numbers raised hopes that the Federal Reserve will cut interest rates, helping to boost the market.

The Nifty traded above the 24,800 level. PSU Bank shares extended gains for the second trading session.

At 12:30 IST, the barometer index, the S&P BSE Sensex gained 277.13 points or 0.34% to 80,993.10. The Nifty 50 index rose 88.65 points or 0.36% to 24,828.65.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.70% and the S&P BSE Small-Cap index jumped 0.50%.

The market breadth was positive. On the BSE, ...